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7. Problem 7.07 (Interest Rate Sensitivity) Problem Walk-Through Book An investor purchased the following five bonds. Each bond had a par value of $1,000 and
7. Problem 7.07 (Interest Rate Sensitivity) Problem Walk-Through Book An investor purchased the following five bonds. Each bond had a par value of $1,000 and an 8% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and each then had a new YTM of 7%. What is the percentage change in price for each bond after the decline in interest rates? Fill in the following table. Enter all amounts as positive numbers. Do not round intermediate calculations. Round your monetary answers to the nearest cent and percentage answers to two decimal places. Percentage Change Price @ 8% Price @ 7% 10-year, 10% annual coupon $ 10-year zero 5-year zero 30-year zero $100 perpetuity Grade It Now Save & Continue Continue without saving
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